Hezbollah leader Seyyed Hassan Nasrallah says the recent speech by the Israeli Prime Minister suggests that the regime is hatching a new "plot" against the region.

"What is happening in the region is a US-Israeli plan. There is a scheme with a clear division of roles between the US and Israel to divide the Arab region," Nasrallah said on Wednesday.

"We should defend our country against what is being plotted for the region ... which includes a possible relocation of the 1948 Palestinians to Lebanon," the Hezbollah leader added.

Nasrallah also said that Israeli Premier Benjamin Netanyahu's speech "dashed the hopes of moderate Arab countries, which were counting on the (US President Barack) Obama administration to bring about a compromise."

Earlier on Sunday, Netanyahu made a speech during which he offered "conditional support" for the establishment of a Palestinian state.

The Premier also said the Palestinian refugee problem would have to be resolved "outside Israel".